The former Microsoft engineer was sentenced to nine years in prison for stealing more than $ 10 million digitally from his former employer in the form of “Stored Currency Value” or CSV, including gift cards.

Volodymyr Kvashuk, a 26-year-old Ukrainian citizen from Washington, used employee accounts and personal data to steal and then sell CSV, making it appear as if his colleagues were responsible for the fraud.

Kwashuk also used a bitcoin mixing service (BTC) to further obscure the documentation, informing the IRS that the $ 2.8 million cryptocurrency that went through his accounts was sent by a relative. According to the US Department of Justice:

“In seven months of KVASHUK’s illegal activities, about $ 2.8 million in bitcoins were transferred to bank and investment accounts. KVASHUK then submitted fake tax return forms claiming the bitcoin was a gift from a relative. ”
Kvashuk worked at Microsoft from August 2016 until its launch in June 2018.

According to IRS Special Agent Ryan Korner, the decision is “the first tax-related bitcoin case in the country.” Corner emphasized that the ruling underscores the growing sophistication of the agency’s forensic arm to identify unregistered cryptocurrencies:

“To put it simply, today’s verdict shows that you cannot steal money on the Internet and believe that Bitcoin will hide your criminal behavior.”
“Stealing from an employer is bad enough,” said Brian Moran of the US Attorney’s Office. “But stealing and exposing one’s responsibility to colleagues increases the damage beyond dollars and cents.”

Kvushuk was convicted of 18 federal crimes, including six counts of money laundering and two counts of filing false tax returns. The Ukrainian used the stolen money to buy a house on the shore of a lake worth $ 1.6 million and a Tesla car worth $ 160,000.

He has been accused of tax evasion on several criminal sites throughout US history. Al Capone, the leader of the gang at the time of the ban, became known for spending seven years in federal prison since 1931 after being convicted of tax evasion.

Source: CoinTelegraph

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